[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42478-42482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15534]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

[167A2100DD/AAKC001030/A0A501010.999900 253G]

25 CFR Parts 140, 141, 211, 213, 225, 226, 227, 243, 249

RIN 1076-AF32


Civil Penalties Inflation Adjustments

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Interim final rule.

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SUMMARY: This rule adjusts the level of civil monetary penalties 
contained in Indian Affairs regulations with an initial ``catch-up'' 
adjustment under the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 and Office of Management and Budget (OMB) 
guidance.

DATES: This rule is effective on August 1, 2016. Comments will be 
accepted until August 29, 2016.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: www.regulations.gov. Search 
for Docket No. BIA-2016-0004 and follow the instructions for submitting 
comments.
     Mail, Hand Delivery, or Courier: Elizabeth Appel, 
Director, Office of Regulatory Affairs and Collaborative Action--Indian 
Affairs, U.S. Dept. of the Interior, 1849 C Street NW., Mail Stop 3642, 
Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of 
Regulatory Affairs and Collaborative Action, Office of the Assistant 
Secretary--Indian Affairs; telephone (202) 273-4680, 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background
II. Description of Changes
III. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation with Indian Tribes (E.O. 13175)

[[Page 42479]]

    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)
    L. Clarity of this Regulation
    M. Administrative Procedure Act

I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Pub. L. 114-74). The Act requires Federal agencies to adjust the 
level of civil monetary penalties with an initial catch-up adjustment 
through rulemaking and then make subsequent annual adjustments for 
inflation. This rule adjusts the level of civil monetary penalties 
within those parts of Title 25 of the Code of Federal Regulations that 
fall under Chapter I, the Bureau of Indian Affairs. This rule does not 
affect criminal penalties, such as those at 25 CFR 273.15. This rule 
does not affect Chapter V, Bureau of Indian Affairs, and Indian Health 
Service or Chapter VI, Office of the Assistant Secretary, Indian 
Affairs, because those chapters contain no civil monetary penalties. 
This rule does not affect Chapter III, National Indian Gaming 
Commission, or Chapter IV, Office of Navajo and Hopi Indian Relocation, 
because those respective offices will determine whether it is necessary 
to issue separate rulemakings.
    The purpose of these adjustments is to maintain the deterrent 
effect of civil penalties and to further the policy goals of the 
underlying statutes. This rule adjusts the following civil monetary 
penalties, as calculated in accordance with the procedures described in 
Section II, Calculation of Adjustment:

----------------------------------------------------------------------------------------------------------------
                                                                                      Catchup
         CFR Citation                Description of penalty           Current       adjustment       Adjusted
                                                                      penalty       multiplier        penalty
----------------------------------------------------------------------------------------------------------------
25 CFR 140.3..................  Penalty for trading in Indian               $500         2.50000          $1,250
                                 country without a license.
25 CFR 141.50.................  Penalty for trading on Navajo,               500         2.50000           1,250
                                 Hopi or Zuni reservations
                                 without a license.
25 CFR 211.55.................  Penalty for violation of leases            1,000         1.50245           1,502
                                 of Tribal land for mineral
                                 development, violation of part
                                 211, or failure to comply with
                                 a notice of noncompliance or
                                 cessation order.
25 CFR 213.37.................  Penalty for failure of lessee to             500         2.50000           1,250
                                 comply with lease of restricted
                                 lands of members of the Five
                                 Civilized Tribes in Oklahoma
                                 for mining, operating
                                 regulations at part 213, or
                                 orders.
25 CFR 225.37.................  Penalty for violation of                   1,000         1.59089           1,591
                                 minerals agreement, regulations
                                 at part 225, other applicable
                                 laws or regulations, or failure
                                 to comply with a notice of
                                 noncompliance or cessation
                                 order.
25 CFR 226.42.................  Penalty for violation of lease               500         1.78156             891
                                 of Osage reservation lands for
                                 oil and gas mining or
                                 regulations at part 226, or
                                 noncompliance with the
                                 Superintendent's order.
25 CFR 226.43(a)..............  Penalty per day for failure to                50         1.78156              89
                                 obtain permission to start
                                 operations.
25 CFR 226.43(b)..............  Penalty per day for failure to                50         1.78156              89
                                 file records.
25 CFR 226.43(c)..............  Penalty for each well and tank                50         1.78156              89
                                 battery for failure to mark
                                 wells and tank batteries.
25 CFR 226.43(d)..............  Penalty each day after                        50         1.78156              89
                                 operations are commenced for
                                 failure to construct and
                                 maintain pits.
25 CFR 226.43(e)..............  Penalty for failure to comply                100         1.78156             178
                                 with requirements regarding
                                 valve or other approved
                                 controlling device.
25 CFR 226.43(f)..............  Penalty for failure to notify                200         1.78156             356
                                 Superintendent before drilling,
                                 redrilling, deepening,
                                 plugging, or abandoning any
                                 well.
25 CFR 226.43(g)..............  Penalty per day for failure to               500         1.78156             891
                                 properly care for and dispose
                                 of deleterious fluids.
25 CFR 226.43(h)..............  Penalty per day for failure to                50         1.78156              89
                                 file plugging and other
                                 required reports.
25 CFR 227.24.................  Penalty for failure of lessee of             500         2.50000           1,250
                                 certain lands in Wind River
                                 Indian Reservation, Wyoming,
                                 for oil and gas mining to
                                 comply with lease provisions,
                                 operating regulations,
                                 regulations at part 227, or
                                 orders.
25 CFR 243.8..................  Penalty for non-Native                     5,000         1.17858           5,893
                                 transferees of live Alaskan
                                 reindeer who violates part 243,
                                 takes reindeer without a
                                 permit, or fails to abide by
                                 permit terms..
25 CFR 249.6(b)...............  Penalty for fishing in violation             500         2.50000           1,250
                                 of regulations at part 249 (Off-
                                 Reservation Treaty Fishing)..
----------------------------------------------------------------------------------------------------------------

II. Calculation of Adjustment

    The OMB issued guidance on calculating the catch-up adjustment. See 
February 24, 2016, Memorandum for the Heads of Executive Departments 
and Agencies, from Shaun Donovan, Director, Office of Management and 
Budget, re: Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015. Under this guidance the 
Department of the Interior (Department) has identified applicable civil 
monetary penalties and calculated the catch-up adjustment. A civil 
monetary penalty is any assessment with a dollar amount that is levied 
for a violation of a Federal civil statute or regulation, and is 
assessed or enforceable through a civil action in Federal court or an 
administrative proceeding. A civil monetary penalty does not include a 
penalty levied for violation of a criminal statute, or fees for 
services, licenses, permits, or other regulatory review. The calculated 
catch-up adjustment is based on the percent change between the Consumer 
Price Index for all Urban Consumers (CPI0-U) for the month of October 
in the year of the previous adjustment (or in the year of 
establishment, if no adjustment has been made) and the October 2015 
CPI-U.

[[Page 42480]]

III. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866 and 13563)

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs in the Office of Management and 
Budget will review all significant rules. The Office of Information and 
Regulatory Affairs has determined that this rule is not significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 emphasizes further 
that regulations must be based on the best available science and that 
the rulemaking process must allow for public participation and an open 
exchange of ideas. We have developed this rule in a manner consistent 
with these requirements.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). The Federal Civil Penalties Adjustment Act of 
2015 requires agencies to adjust civil penalties with an initial catch-
up adjustment through an interim final rule. An interim final rule does 
not include first publishing a proposed rule. Thus, the RFA does not 
apply to this final rule.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more;
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions;
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under E.O. 12630. A takings implication 
assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of E.O. 13132, this rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. A federalism summary impact 
statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department strives to strengthen its government-to-government 
relationship with Indian tribes through a commitment to consultation 
with Indian Tribes and recognition of their right to self-governance 
and tribal sovereignty. We have evaluated this rule under the 
Department's consultation policy and under the criteria in E.O. 13175 
and have determined that is has no substantial direct effects on 
federally recognized Indian tribes and that consultation under the 
Department's tribal consultation policy is not required.

I. Paperwork Reduction Act

    This rule does not contain information collection requirements, and 
a submission to the OMB under the Paperwork Reduction Act (44 U.S.C. 
3501 et seq.) is not required. We may not conduct or sponsor, and you 
are not required to respond to, a collection of information unless it 
displays a currently valid OMB control number.

J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 (NEPA) is not 
required because the rule is covered by a categorical exclusion. This 
rule is excluded from the requirement to prepare a detailed statement 
because it is a regulation of an administrative nature. (For further 
information, see 43 CFR 46.210(i).) We have also determined that the 
rule does not involve any of the extraordinary circumstances listed in 
43 CFR 46.215 that would require further analysis under NEPA.

K. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211. A Statement of Energy Effects is not required.

L. Clarity of This Regulation

    We are required by E.O. 12866 (section 1(b)(12)), and 12988 
(section 3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential 
Memorandum of June 1, 1998, to write all rules in plain language. This 
means that each rule we publish must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use common, everyday words and clear language rather than 
jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, the sections where you think lists or tables would be useful, 
etc.

M. Administrative Procedure Act

    The Act requires agencies to publish interim final rules by July 1, 
2016, with an effective date for the adjusted penalties no later than 
August 1, 2016. To comply with the Act, we are issuing

[[Page 42481]]

these regulations as an interim final rule and are requesting comments 
post-promulgation. Section 553(b) of the Administrative Procedure Act 
(APA) provides that, when an agency for good cause finds that ``notice 
and public procedure . . . are impracticable, unnecessary, or contrary 
to the public interest,'' the agency may issue a rule without providing 
notice and an opportunity for prior public comment. The Bureau of 
Indian Affairs (BIA) finds that there is good cause to promulgate this 
rule without first providing for public comment. It would not be 
possible to meet the deadlines imposed by the Act if we were to first 
publish a proposed rule, allow the public sufficient time to submit 
comments, analyze the comments, and publish a final rule. Also, BIA is 
promulgating this final rule to implement the statutory directive in 
the Act, which requires agencies to publish an interim final rule and 
to update the civil penalty amounts by applying the specified formula. 
BIA has no discretion to vary the amount of the adjustment to reflect 
any views or suggestions provided by commenters. Accordingly, it would 
serve no purpose to provide an opportunity for pre-promulgation public 
comment on this rule. Thus, pre-promulgation notice and public comment 
is impracticable and unnecessary.

List of Subjects

25 CFR Part 140

    Business and industry, Indians, Penalties.

25 CFR Part 141

    Business and industry, Credit, Indians--business and finance, 
Penalties.

25 CFR Part 211

    Geothermal energy, Indians--lands, Mineral resources, Mines, Oil 
and gas exploration, Reporting and recordkeeping requirements.

25 CFR Part 213

    Indians--lands, Mineral resources, Mines, Oil and gas exploration, 
Reporting and recordkeeping requirements.

25 CFR Part 225

    Geothermal energy, Indians--lands, Mineral resources, Mines, Oil 
and gas exploration, Penalties, Reporting and recordkeeping 
requirements, Surety bonds.

25 CFR Part 226

    Indians--lands.

25 CFR Part 227

    Indians--lands, Mineral resources, Mines, Oil and gas exploration, 
Reporting and recordkeeping requirements.

25 CFR Part 243

    Indians, Livestock.

25 CFR Part 249

    Fishing, Indians.

    For the reasons given in the preamble, the Department of the 
Interior amends Chapter I of title 25 Code of Federal Regulations as 
follows.

PART 140--LICENSED INDIAN TRADERS

0
1. The authority citation for part 140 is revised to read as follows:

    Authority: Sec. 5, 19 Stat. 200, sec. 1, 31 Stat. 1066 as 
amended; 25 U.S.C. 261, 262; 94 Stat. 544, 18 U.S.C. 437; 25 U.S.C. 
2 and 9; 5 U.S.C. 301; and Sec. 701, Pub. L. 114-74, 129 Stat. 599, 
unless otherwise noted.


Sec.  140.3  [Amended]

0
2. In Sec.  140.3, remove ``$500'' and add in its place ``$1,250''.

PART 141--BUSINESS PRACTICES ON THE NAVAJO, HOPI AND ZUNI 
RESERVATIONS

0
3. The authority citation for part 141 is revised to read as follows:

    Authority: 5 U.S.C. 301; 25 U.S.C. 2 and 9; and Sec. 701, Pub. 
L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  141.50  [Amended]

0
4. In Sec.  141.50, remove ``five hundred dollars ($500)'' and add in 
its place ``$1,250''.

PART 211--LEASING OF TRIBAL LANDS FOR MINERAL DEVELOPMENT

0
5. The authority citation for part 211 is revised to read as follows:

    Authority: Sec. 4, Act of May 11, 1938 (52 Stat. 347); Act of 
August 1, 1956 (70 Stat. 744); 25 U.S.C. 396a-g; 25 U.S.C. 2 and 9; 
and Sec. 701, Pub. L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  211.55  [Amended]

0
6. In Sec.  211.55(a), remove ``$1,000'' and add in its place 
``$1,502''.

PART 213--LEASING OF RESTRICTED LANDS FOR MEMBERS OF FIVE CIVILIZED 
TRIBES, OKLAHOMA, FOR MINING

0
7. The authority citation for part 213 is revised to read as follows:

    Authority: Sec. 2, 35 Stat. 312; sec. 18, 41 Stat. 426; sec. 1, 
45 Stat. 495; sec. 1, 47 Stat. 777; 25 U.S.C. 356; and Sec. 701, 
Pub. L. 114-74, 129 Stat. 599. Interpret or apply secs. 3, 11, 35 
Stat. 313, 316; sec. 8, 47 Stat. 779, unless otherwise noted.


Sec.  213.37  [Amended]

0
8. In Sec.  213.37, remove ``$500'' and add in its place ``$1,250''.

PART 225--OIL AND GAS, GEOTHERMAL AND SOLID MINERALS AGREEMENTS

0
9. The authority citation for part 225 is revised to read as follows:

    Authority: 25 U.S.C. 2, 9, and 2101-2108; and Sec. 701, Pub. L. 
114-74, 129 Stat. 599.


Sec.  225.37  [Amended]

0
10. In Sec.  225.37(a), remove ``$1,000'' and add in its place 
``$1,591''.

PART 226--LEASING OF OSAGE RESERVATION LANDS FOR OIL AND GAS MINING

0
9. The authority citation for part 226 is revised to read as follows:

    Authority: Sec. 3, 34 Stat. 543; secs. 1, 2, 45 Stat. 1478; sec. 
3, 52 Stat. 1034, 1035; sec. 2(a), 92 Stat. 1660; and Sec. 701, Pub. 
L. 114-74, 129 Stat. 599.


Sec.  226.42  [Amended]

0
10. In Sec.  226.42, remove ``$500'' and add in its place ``$891''.


Sec.  226.43  [Amended]

0
11. In Sec.  226.43:

0
a. Remove ``$50'' each time it appears and add in each place ``$89'' 
wherever it appears in this section.
0
b. In paragraph (e), remove ``$100'' and add in its place ``$178''.
0
c. In paragraph (f), remove ``$200'' and add in its place ``$356''.
0
d. In paragraph (g), remove ``$500'' and add in its place ``$891''.

PART 227--LEASING OF CERTAIN LANDS IN WIND RIVER INDIAN 
RESERVATION, WYOMING, FOR OIL AND GAS MINING

0
12. The authority citation for part 227 is revised to read as follows:

    Authority: Sec. 1, 39 Stat. 519; and Sec. 701, Pub. L. 114-74, 
129 Stat. 599, unless otherwise noted.


Sec.  227.24  [Amended]

0
13. In Sec.  227.24, remove ``$500'' and add in its place ``$1,250''.

PART 243--REINDEER IN ALASKA

0
14. The authority citation for part 243 is revised to read as follows:

    Authority: Sec. 12, 50 Stat. 902; 25 U.S.C. 500K; and Sec. 701, 
Pub. L. 114-74, 129 Stat. 599.

[[Page 42482]]

Sec.  243.8  [Amended]

0
15. In Sec.  243.8(a), remove ``$5000.00'' and add in its place 
``$5,893''.

PART 249--OFF-RESERVATION TREATY FISHING

0
16. The authority citation for part 249 is revised to read as follows:

    Authority: 25 U.S.C. 2, and 9; 5 U.S.C. 301; and Sec. 701, Pub. 
L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  249.6  [Amended]

0
17. In Sec.  249.6(b), remove ``$500'' and add in its place ``$1,250''.

    Dated: June 24, 2016.
Lawrence S. Roberts,
Acting Assistant Secretary--Indian Affairs.
[FR Doc. 2016-15534 Filed 6-29-16; 8:45 am]
BILLING CODE 4337-15-P